Research On Enterprise Merging Risk

Enterprise merger and reconstruction is a necessary trend accompanying the deepening of economic globalization, and also a fresh component concerning enterprise management. Influenced by the push of market & information globalization and the rapid development of high-tech industry, the distribution of enterprise producing resources is converting to dynamic and open process. Enterprise merger takes property rights as object and realizes the transfer of enterprise controlling rights and resources reconstruction through property right transfer, which has been an important approach push the growth of enterprise and an impetus adjusting industry structure and innovating enterprise institutions, furthermore it takes more and more important roles in capital market. Meanwhile, from the view of the characteristics of enterprise merger and foreign & domestic enterprise merging practices, merger is also a high-risk capital operating activities. Therefore it's practically significant to strengthen the risk management of enterprise merger.Aiming at discovering influencing factors of enterprise merger and risk cost theory, this paper discusses the recognition and measuring approaches of enterprise merger, finally provides some feasible pathway to treat and control enterprise merging risk to regulate enterprise merging risk, improve merger decision-making level and decrease enterprise merger risk.This paper is divided into six chapters. Chapter 1: Introduction. This part mainly expatiates the research background and significances, framework, research approach and potential innovation points. Chapter 2: Review of enterprise merger theory. Firstly, this part defines the paper research object and the concept of merger, then reviews the enterprise merger theory, based on which systematically researches merger drives and performance. The research on enterprise merger drives is outspreaded as three aspects: First based on Marx's capital decentralization theory; second based on Cassy's transaction cost theory; third based on Tobin's 'Q' theory. Chapter 3: Theory of enterprise merger risk. Firstly, completely review the types of merger risk, then analyze the courses and costs of enterprise merger risk. Chapter 4 firstly researches the risk recognition, then measures enterprise merger risk through gray conjunction and VaR approach. Chapter 5: Treatment of enterprise merger risk. The end goal of researching enterprise merger risk is to treat merger risk. This chapter is outspreaded from four aspects: risk treating strategy, risk avoidance, risk transfer and risk control, through which forms a intact research system of merger risk. Chapter 6: Relevant policy advice on improving China' s enterprise merger risk management.